Budimex looks to consolidate in CEE
Recent acquisitions in the sector have included Bilfinger Berger's of the Polish road builder WPRD and Strabag's purchase of a 25 percent stake in the Polish highway toll operator Stalexport Autostrada Śląska. These have occurred now because of an expected boom in infrastructure projects in Poland following the country's accession to the EU. Budimex, however, feels it has already bolstered its position sufficiently: "We aren't buying any other companies and are not interested in any acquisitions at the moment," says Koziol, adding, "We are already well-prepared for the development of the construction market in Poland." He admitted, however, that there might be an outside chance of the company moving in on a company in the rail construction sector. "We are thinking about this but haven't made any firm decisions along these lines," he said.
Unlike other competing domestic firms such as Mostostal Export, whose biggest earnings are generated in Russia and other former Soviet countries, Budimex's sales in that part of the world only account for around a quarter of its total revenue. However, according to Koziol, because the market there is "growing very dynamically," the company this year hopes to win contracts worth around zł.100 million in the region as a whole. A number of Polish construction companies are keeping a keen eye on developments further east and have already signed lucrative contracts there, but Koziol believes his firm has an advantage over them. "Those who know the mentality, the language and have contacts in this region will gain a competitive edge," he says. "It's not that easy to enter this market without the right knowledge and contacts." The great diversity of the former Soviet Union is reflected in Budimex's strategy there. The projects they've recently been involved in have included a fitness club, apartment buildings, a conference hall, a Volkswagen car showroom and hotel in Moscow, as well as a border post between Poland and the Kaliningrad region. Such diversity is deliberate according to Koziol: "We look at this market broadly," he says, "it's not at all wise to focus too narrowly in this region."
Unlike other competing domestic firms such as Mostostal Export, whose biggest earnings are generated in Russia and other former Soviet countries, Budimex's sales in that part of the world only account for around a quarter of its total revenue. However, according to Koziol, because the market there is "growing very dynamically," the company this year hopes to win contracts worth around zł.100 million in the region as a whole. A number of Polish construction companies are keeping a keen eye on developments further east and have already signed lucrative contracts there, but Koziol believes his firm has an advantage over them. "Those who know the mentality, the language and have contacts in this region will gain a competitive edge," he says. "It's not that easy to enter this market without the right knowledge and contacts." The great diversity of the former Soviet Union is reflected in Budimex's strategy there. The projects they've recently been involved in have included a fitness club, apartment buildings, a conference hall, a Volkswagen car showroom and hotel in Moscow, as well as a border post between Poland and the Kaliningrad region. Such diversity is deliberate according to Koziol: "We look at this market broadly," he says, "it's not at all wise to focus too narrowly in this region."
